Tax tips every Canadian should know about

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Welcome to tax season folks!  This season is not nearly as exciting as spring and probably not as exciting as the NHL playoffs (my Sens are out of the picture unfortunately…) but a season nonetheless.  Submitting your tax return is one thing.  Making sure you include all the important deductions to avoid leaving money on the table is quite another.  Today’s post will list a few tax tips I think every Canadian should know about this year.

Charitable donations

Be sure to find your tax receipts from eligible charity donations made throughout last year.  Also, introduced back in 2013, see if you can take advantage of the first-time donor super credit.

Your first home

If you moved into your first house or condo a few years ago and you failed to mention it on your tax return, well make sure you mention it. Check out the first-time home buyer’s tax credit.

Did you move?

If you moved more than 40 kilometres last year for work purposes or to take courses as a student you might be leaving money on the table.

Contribute to your RRSP

The RRSP contribution deadline for the 2014 tax year is March 2, 2015. You have some time to take advantage of the RRSP limit for 2014:  $24,270. However, your 2014 RRSP deduction limit may be more than that since your unused RRSP deduction room can be carried forward.

Got a home-based business?

Besides mortgage interest, property taxes and/or rent, there are other expenses that a home based business can claim deductions for.  Here are some big ones:

  • Heat
  • Hydro
  • Utilities
  • Maintenance
  • Telephone
  • Internet connection

Remember you can deduct any reasonable current expense you incur to earn business income.

Active kids?

If you have active kids, good on you for a few reasons, an active body is an active mind and you can take advantage of the children’s fitness tax credit.

Get some help submitting your tax return this year – enter my giveaway here for a chance to win one of six (6) TurboTax Canada tax filing codes. Good luck with your entry and your tax submission this year.

19 Responses to "Tax tips every Canadian should know about"

  1. Excellent tips Mark. I have just completed my tax return for 2014 and the return will be issued on March 2nd. I just can’t wait to think about investing it right away once it is issued. It is just a matter of what companies am I going to invest in now. Haha Happy and exciting concerns!

    BeSmartRich

    Reply
  2. Nice tips Mark!

    If government owes you money, make sure you file that return as soon as you can in March. Every cent I can get from the government, I want to get it ASAP. LOL.
    Is March 1st the first day we can start the online filing?

    Reply
      1. Thanks Mark. It looks like a student can transfer unused credits. So, your kids’ tuition fees is tax-deductible, providing they don’t have any income. I wonder how this can be combined with a RESP.
        Sophia

        –———————
        The student has calculated on their Schedule 11 the amount of this credit which they will need to reduce their own tax owing. If there is any remaining amount the student may choose to transfer it to one of the following individuals.

        The student cannot transfer any amount they carried forward in a previous year. The maximum amount they are allowed to transfer is $5,000 less the amount they needed to use to reduce their own tax owing.

        Only one person can claim this transfer from the student. It does not need to be the same person from year to year.

        Reply

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